Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News
      Your AI isn't as smart as it sounds - Etienne Barnard

      Your AI isn’t as smart as it sounds

      20 October 2026
      Reserve Bank's ATM plan meets a wall of polite silence

      Reserve Bank’s ATM plan meets a wall of polite silence

      20 October 2026
      Why a robotaxi would struggle to make money in Sandton

      Why a robotaxi would struggle to make money in Sandton

      20 October 2026
      Most of Datatec's R7-billion payout was taken in shares, not cash

      Most of Datatec’s R7-billion payout was taken in shares, not cash

      20 October 2026
      This is what an AI-run hacking spree looks like

      This is what an AI-run hacking spree looks like

      20 October 2026
    • World
      OpenAI turns the tables on Apple in trade secrets fight

      OpenAI turns the tables on Apple in trade secrets fight

      15 October 2026
      Google's Gemini 4 Argon is finally here

      Google’s Gemini 4 Argon is finally here

      14 October 2026
      Apple's new HomeView smart home hub

      Apple takes another shot at the smart home

      13 October 2026
      AI is now holding up the world economy, says IMF

      AI is now propping up the world economy, says IMF

      12 October 2026
      SpaceX takes aim at US wireless carriers with spectrum acquisition

      Starlink is coming for your mobile operator

      9 October 2026
    • In-depth

      10 days that changed the course of AI

      21 September 2026
      Meta to the AI industry: slow down without us - Mark Zuckerberg

      Meta to the AI industry: slow down without us

      16 September 2026
      Google DeepMind CEO Demis Hassabis. Image: John Sears

      The plan to stop AI from breaking the world

      16 July 2026
      The internet has a Strait of Hormuz problem

      The internet has a Strait of Hormuz problem

      15 July 2026
      AI boom sparks rally, frenzy and fear

      AI boom sparks rally, frenzy and fear

      11 June 2026
    • TCS
      W&W | LDV's Gerhard Moolman on electric bakkies, fleet orders and 'school fees'

      W&W | LDV’s Gerhard Moolman on electric bakkies and fleets

      9 October 2026
      TCS | Frogfoot sees bigger fibre deals coming - TechCentral Show guests Abraham van der Merwe and Shane Chorley

      TCS | Frogfoot sees bigger fibre deals coming

      8 October 2026
      Meet the CIO | Vodacom's Mohamed Sami on the agentic future

      Meet the CIO | Vodacom’s Mohamed Sami on the agentic future

      5 October 2026
      Lexi Novitske, general partner at Norrsken22, on the TechCentral Show

      TCS | Norrsken22’s Lexi Novitske on how China is winning African tech

      1 October 2026
      TCS | Dominic White and Adam Ely on AI agents going rogue

      TCS | Dominic White and Adam Ely on AI agents going rogue

      29 September 2026
    • Opinion
      Nonkqubela Thathakahle Jordan-Dyani

      Why cybersecurity is now a national security issue for South Africa

      15 October 2026
      When a machine can choose, who does it become? Fanie van Rooyen

      When a machine can choose, who does it become?

      9 October 2026
      Let South Africans jailbreak their way to digital sovereignty - Dirk de Vos

      Let South Africans jailbreak their way to digital sovereignty

      5 October 2026
      South Africa's next energy crisis is in the accounts department - Craig Holmes

      South Africa’s next energy crisis is in the accounts department

      29 September 2026
      The steam engine lesson AI doomsayers keep missing - Sam Clarke

      The steam engine lesson AI doomsayers keep missing

      28 September 2026
    • Company News
      • 1Stream
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • Ascent Technology
      • AvertITD
      • BBD
      • Braintree
      • CallMiner
      • CambriLearn
      • CM.com
      • Contactable
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • HOSTAFRICA
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • Kaspersky
      • LSD Open
      • Mitel
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Publishared
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Telviva
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Vox
      • Wipro
      • Workday
      • XLink
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Fintech and payments
      • HealthTech
      • Information security
      • Internet and connectivity
      • Internet of things
      • Investment
      • IT services
      • Lifestyle
      • Policy and regulation
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
      • Watts & Wheels
    • Events
    • Advertise
    TechCentralTechCentral
    Home » Sections » Retail and e-commerce » Amazon South Africa got off to a slow start – but don’t write it off

    Amazon South Africa got off to a slow start – but don’t write it off

    Bob Group MD Andy Higgins said criticism of Amazon’s May launch in South Africa is largely based on inflated expectations.
    By Nkosinathi Ndlovu15 July 2024
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    Get breaking news on WhatsApp

    Amazon South Africa got off to a slow start - but don't write it offAndy Higgins, MD of e-commerce solutions company Bob Group, said criticism of Amazon’s May launch in South Africa is largely based on media hype and the inflated expectations of consumers who have experienced Amazon in other markets.

    “As far as I am aware, nowhere did Amazon South Africa themselves create any hype; in fact, I think they downplayed it,” Higgins told the TechCentral Show in an interview to be published this week.

    “External parties created that expectation. If you look at where Amazon has launched in other markets, I don’t think they have gone with fanfare – there is no reason they should be any different in South Africa,” he said.

    There are many aspects to operating profitably in the e-commerce space, but logistics is the most important

    According to Higgins, Amazon’s biggest challenge in South Africa likely relates to the complexity of the logistics infrastructure. He said Amazon is competing with a sophisticated incumbent in Naspers-owned Takealot Group, which has deep knowledge of South Africa’s logistics landscape and also owns a fulfilment network through Mr D. Amazon South Africa, on the other hand, uses third parties for its logistics.

    Another driver that Higgins believes fuelled hype around the Amazon South Africa launch was related to people’s experiences with other international digital businesses such as Google and Netflix, which very quickly dominated their respective markets locally.

    Higgins said the same cannot happen in e-commerce because it is fundamentally different. “Those services are purely digital, whereas here when we talk e-commerce – for the most part – there is a physical product involved, which adds much more complexity to the process.”

    Challenges

    He said he suspects the reason Amazon South Africa launched without any Amazon-branded products – no Echo smart speakers or Kindle e-readers are available for purchase on amazon.co.za – also relates to logistical challenges of carrying and supporting those devices to the standard the market expects.

    “These [products] will come in time, but it may take longer than people expect. I think one of the challenges Amazon will have is having to fit into software and a system that has been built for other markets. It will be difficult to get customisations made to how the system works for South Africa, which makes up a fraction of their business. I can foresee challenges in getting that right,” said Higgins.

    Read: Amazon Prime is coming to South Africa – what to expect

    Speculation about Amazon’s entry into local retail operations began in 2022, but it was only in October 2023 that the online shopping giant confirmed its intention to launch a marketplace operation in South Africa. In May 2024, amazon.co.za went live with little fanfare.

    Much of the anticipation leading up to Amazon’s South African launch was off the back of its Prime service, which the company had said it would launch here.

    Andy Higgins

    In the US, Prime membership – which costs US$14.99/month or $139/year – includes shipping benefits, with free two-day shipping on qualifying items as standard. No minimum purchase amount is required, so even a single low-priced item costing only a few dollars will be delivered free of charge.

    “There are many aspects to operating profitably in the e-commerce space, but I think logistics is the most important. In other markets Amazon has built its own logistics infrastructure, which could happen in South Africa. I think it’s a long way off, though,” said Higgins.  – © 2024 NewsCentral Media

    Read next: Amazon launches in South Africa … without any Amazon products

    Add TechCentral as a preferred source on GoogleFollow TechCentral on Google NewsGet breaking news on WhatsApp


    Amazon Amazon South Africa amazon.co.za Andy Higgins Bob Group Takealot
    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleEmerging markets must embrace renewables: Ramaphosa
    Next Article Ministers to meet with broadcasters as sports licensing feud rages

    Related Posts

    Data sovereignty in South Africa is not an address - Ascent Technology, Johan Lamberts

    Data sovereignty in South Africa is not an address

    15 October 2026
    Apple's new HomeView smart home hub

    Apple takes another shot at the smart home

    13 October 2026
    AI spending now dwarfs the railway and dot-com booms

    AI spending now dwarfs the railway and dot-com booms

    4 October 2026
    Company News
    How to choose a .co.za domain without paying more later

    How to choose a .co.za domain without paying more later

    20 October 2026
    Winners, from left: Zandile Monaisa (Rand Refinery), Sibongakonke Kheswa (PSG Capital), Stefan Links (Forestry South Africa), Thabang Modiba (Mondelez International), Charmaine Ncube (Razor PR), Shaun Burger-Smal (Bestmed Medical Scheme), Nandipha Ngcobo (Transnet), Tracy Mulwela (Vodacom), Cheryl-Lynn Freeman (Mzansi Business Services), Yasheen Harrielall (Zutari), Valentine Mabaso (Taonga Business Group) and Thabang Thlaku (African Rainbow Minerals). Image: Rising Star Awards

    Celebrating South Africa’s rising stars: the leaders shaping what comes next

    19 October 2026
    Paratus Zambia delivers Starlink to thousands of children in Family Legacy schools

    Paratus Zambia delivers Starlink to thousands of children in Family Legacy schools

    15 October 2026
    Opinion
    Nonkqubela Thathakahle Jordan-Dyani

    Why cybersecurity is now a national security issue for South Africa

    15 October 2026
    When a machine can choose, who does it become? Fanie van Rooyen

    When a machine can choose, who does it become?

    9 October 2026
    Let South Africans jailbreak their way to digital sovereignty - Dirk de Vos

    Let South Africans jailbreak their way to digital sovereignty

    5 October 2026

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Latest Posts
    Your AI isn't as smart as it sounds - Etienne Barnard

    Your AI isn’t as smart as it sounds

    20 October 2026
    Reserve Bank's ATM plan meets a wall of polite silence

    Reserve Bank’s ATM plan meets a wall of polite silence

    20 October 2026
    Why a robotaxi would struggle to make money in Sandton

    Why a robotaxi would struggle to make money in Sandton

    20 October 2026
    How to choose a .co.za domain without paying more later

    How to choose a .co.za domain without paying more later

    20 October 2026
    © 2009 - 2026 NewsCentral Media
    Built and maintained by Chronon
    • Cookie policy (ZA)
    • TechCentral – privacy and Popia

    Type above and press Enter to search. Press Esc to cancel.

    Manage consent

    TechCentral uses cookies to enhance its offerings. Consenting to these technologies allows us to serve you better. Not consenting or withdrawing consent may adversely affect certain features and functions of the website.

    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    • Manage options
    • Manage services
    • Manage {vendor_count} vendors
    • Read more about these purposes
    View preferences
    • {title}
    • {title}
    • {title}
    🇿🇦 Sign up to the TechCentral newsletter